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Project Pegasus, under the control of Obadiah Stane, creates an upgraded version of the Crimson Dynamo. With it, they capture Iron Man and begin analyzing the suit. After Rhodey and Pepper bust Iron Man out, Tony is ready for revenge. This time, Iron Man takes on the Crimson Dynamo with help from his new upgrade- the Dynamo Buster Armor.
Tony and his friends' search for the ancient Makluan Rings goes awry when the guardians of the Rings, the Dreadknights, arrive.
The pressures of living a normal teenage life and being Iron Man become too much for Tony. Deciding he doesn't need school anymore, Tony quits and focuses on saving the world as Iron Man full time. But when a new villain, called the Living Laser, appears, Tony learns that he has to graduate in order to take over Stark Industries.